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Consortium invests in clean energy at steelworks in Bosnia Herzegovina

Alan Sherrard

Heat & Power

October 9, 2018

Finnish development financier Finnfund has announced that it has committed EUR 1.8 million to a new energy plant in the city of Zenica, Bosnia Herzegovina. The plant will utilize the coke and blast furnace gases from the ArcelorMittal Zenica steelworks as fuel and significantly reduce the air emissions of the power production. The project, which is being jointly developed by Finnfund, ArcelorMittal, KPA Unicon and the city of Zenica, will replace an old coal-fired plant.

A project being jointly developed by Finnfund, ArcelorMittal, KPA Unicon and the city of Zenica in Bosnia Herzegovina will replace an old coal-fired energy plant at ArcelorMittal’s Zenica steelworks. The new plant will utilize the coke and blast furnace gases from the steelworks to provide all the district heat for the city as well as most of the energy needed in ArcelorMittal’s steelworks while reducing emissions and improving local air quality (photo courtesy ArcelorMittal Zenica).

The new energy plant is being developed by a joint venture owned by Finnfund, KPA Unicon, City of Zenica and ArcelorMittal and will be designed and delivered by Finland headed combustion technology providers KPA Unicon Oy. Once it is commissioned in 2020, the plant will produce all district heat for Zenica as well as most of the energy needed in the ArcelorMittal Zenica steelworks.

As a development financier, our mission is to foster clean energy production and circular economy. With KPA Unicon, City of Zenica and ArcelorMittal, we have created a model which aims to enhance the state of the environment and the living environment of the people of Zenica as well as ensure energy production for the region’s needs”, emphasizes Tuomas Suurpää, Senior Investment Manager of Finnfund.

According to KPA the plant’s steam production capacity will be 150 tonnes per hour at 37 bar and 420°C. KPA Unicon will also supply a redundant PlantSys remote operating system as a part of the power plant entity, as well as operations and maintenance services to ensure high availability and usability of energy production.

This is a great achievement for us and a step in the direction of making initiatives that will bring value to our partners. In Zenica, through this joint venture, we will create and implement a clean energy solution together with our customer and partners. We will renew ArcelorMittal’s existing energy production systems with cleaner technology utilizing the coke and blast furnace gases from the steelworks as fuel, which will significantly reduce emissions and guarantee continuous heat production, said Jukka-Pekka Kovanen, Deputy Chairman of KPA Unicon Group’s Board of Directors.

The new plant will be operated in many respects according to the best EU practices and environmental norms. The current boilers use coal as fuel, which is the main source of sulphur emissions from the steelworks.

Introduction of the new plant will significantly improve people’s living conditions through emission reductions. Our customer can replace the old plant by the new power plant which is one of the largest coal-fired power plants in Bosnia. It is very fascinating and meaningful to be a part of building a cleaner environment in Zenica, said Jukka-Pekka Kovanen.

The concept of the plant is designed in co-operation with the Croatian company Eco Consult d.o.o.

Living the philosophy is our motto and our main driver. In every project we develop we keep in mind that we need to provide socially responsible, sustainable, environmentally friendly and energy efficient projects. Our first project in ArcelorMittal Zenica increased energy efficiency by utilizing waste steam and now we are proud that we have been able to continue with our contribution to develop this highly responsible and clean project for ArcelorMittal and people of Zenica and Bosnia Hercegovina, said Goran Pavlovic, Founder of Eco Consult.

Development financier Finnfund has committed EUR 1.8 million to the project (photo courtesy Finnfund).